NEW SUMMARY: Precious metal prices rose Monday on market volatility and a weaker dollar. U.S. stocks fell sharply on political and economic worries as tech giant Facebook's shares skidded over 7%.

How to Maximize Your Gains in a Gold Rally -The National
"The price of gold is likely to move higher again this week if the Federal Reserve raises interest rates as forecast. Gold prices have jumped after each of the previous five rises of the current cycle and is more than 30 per cent up from its recent bear market low of $1,050, touched in December 2015....If any single factor can be isolated to explain the latest price surge for the yellow metal, it has to be the relative weakness of the US dollar over this period....The five Fed interest rate rises have so far failed to stop the fall in the greenback's value as the market is more worried about a surge in the national debt courtesy of tax cuts and increased military spending. One possible future scenario is that January's US stock market decline resumes and that the Fed then cuts interest rates to counter an even more serious correction. That's what happened in 2008 when rates rose up and up until the stock market crashed and then went down all the way to zero. The effect of that was a dollar crash and soaring precious metal prices, with gold hitting an all-time high of $1,923 an ounce by October 2011....Open your eyes to a wealth of opportunities right now in the gold and silver sector, where you can still get in ahead of the crowd."

When Did the Stock Market Crash? -Motley Fool
"A stock market crash is loosely defined as a sudden and sharp decline in stock prices across a broad portion of the stock market. Crashes can be triggered by panic, economic factors, bursting of speculative bubbles, and these days, by automated trading technologies. Since 1772, the U.S. has experienced a total of 22 stock market crashes, but not all have been equally harsh or long-lasting. With that in mind, here are some of the most notable U.S. stock market crashes, and a brief rundown of the causes and results of each one....One of the worst stock market crashes in U.S. history was the Panic of 1907. The stock market fell by about 50% during a three-week period...which led to the collapse of the Knickerbocker Trust....The Crash of 1929 was the worst, and longest-lived crash we've had. From September 1929 through July 1932, the Dow Jones Industrial Average lost a staggering 89% of its value....October 19, 1987 was the largest one-day percentage drop in the Dow Jones Industrial Average in history. The Dow fell by 508 points on the day, which was a 22% drop at the time. For context, this would be like a one-day drop of 5,500 points in 2018."

Suddenly, it seems as though many experts are warning us about a potential stock market collapse. Truth is, America appears to be getting stronger by the day, not weaker. And so what if the stock market takes a big correction? It always comes back, right? Discover how to find the hidden positives and negatives of today's rising economic optimism in a brand new Swiss America Special Report: THE CRASHLESS SOCIETY.

The Best Investment Advice Nobody Will Give You -567 Capital
"Even if you're an investing novice, it's likely you've heard of Warren Buffett. And for good reason: Warren Buffett is currently the third-richest person in the world with a reported net worth of $84 billion. Unlike the two richest men, Buffett created his wealth mostly by investing - as in the actual act of buying and selling companies - rather than creating a product or service....If you were able to invest $1,000 in Berkshire Hathaway when Buffett was named as CEO, your initial investment would be worth approximately $21 million versus $161,000 from a $1000 investment in the S&P 500. Here's the rub: It's virtually a certainty that you're no Warren Buffett. Don't take this personally....Here's the best advice nobody in the financial industry will tell you: Your savings rate is more important to your investing success than your rate of return.To drive home this point, meet Saver Sally. Sally is a consistent investor and accepts the market's return instead of attempting to time or beat the market. After 20 years of stashing away $1000 per month, Sally has an admirable nest egg of approximately $760,000....Too often investors are looking to be the next Warren Buffett (without the prerequisite investing intelligence) rather than the next Saver Sally. It may not be as exciting, but investing more money has the benefit of being a less-risky approach to increase your net worth."

74% Of Americans Believe The "Deep State" Is Running The Country -Zero Hedge
"According to a new poll, that's precisely the case because a supermajority of Americans believes the faction of unelected officials, known as the deep state, is orchestrating policy in Washington, D.C. and effectively running the nation. The Monmouth University Polling Institute found that no less than 74% of Americans believe in a 'deep state' when it is described as a collection of unelected officials running policy. Only 21% do not believe this kind of group exists. As a result of countless 'conspiracy theories' being proven as facts in recent years, chief among which the Edwards Snowden revelations which exposed the NSA as nothing short of 'big brother'... fully 8-in-10 believe that the U.S. government currently monitors or spies on the activities of American citizens, including a majority (53%) who say this activity is widespread and another 29% who say such monitoring happens but is not widespread. Just 14% say this monitoring does not happen at all. Shockingly, there were no substantial partisan differences in these results....Monmouth University Polling Institute Director Patrick Murray said in a statement. 'There's an ominous feeling by Democrats and Republicans alike that a 'Deep State' of unelected operatives are pulling the levers of power.'....'This is a worrisome finding. The strength of our government relies on public faith in protecting our freedoms, which is not particularly robust. And it’s not a Democratic or Republican issue. These concerns span the political spectrum,' said Murray."

Gold firms on political concerns, softer dollar -Reuters
"Gold prices edged higher early on Friday, supported by a weaker dollar and safe-haven demand amid U.S. political concerns and tensions between the United Kingdom and Russia. However, further gains were capped by expectations that the U.S. Federal Reserve would raise interest rates at its policy meeting next week. 'As choppier markets seem likely, gold will remain a good hedge against unexpected spikes in equity market volatility and geopolitical tensions, in our view,' UBS analysts said in a note. Growing U.S. political uncertainties following the recent departure of two key officials, former Secretary of State Rex Tillerson and top economic advisor Gary Cohn, from the Trump administration have left investors worried."

Why Wall Street's Seasoned Pros Are Jumping Ship -Bonner/Bonner And Partners
"The Fed has announced a program of QT - quantitative tightening - in which it sells (or simply allows to expire) the bonds in its portfolio at a rate of $600 billion a year. Meanwhile, the federal government itself has cut taxes, forcing it to cover its shortfall by borrowing nearly $1 trillion in 2018. The combination will add nearly $2 trillion a year to the supply of bonds available for purchase. Who will buy them? At what price? Most likely, no one will buy... unless rates rise to make it worth their while. Most likely, rates will rise. Most likely, asset prices will fall. And some of Wall Street's most seasoned pros are bailing out. Bloomberg says famous analyst Dennis Gartman is selling: In Wednesday’s edition of his eponymous newsletter, the economist said he is 'calling for a major, multiyear top on the equity markets following the recent volatility and following the reversals to the downside that took place yesterday in the Dow Industrials; the Nasdaq; the S&P and the Russell 2000.' He said the forecast represented a 'watershed' moment. And founder of the DoubleLine Capital investment firm, Jeffrey Gundlach says so, too: 'We are late in the economic cycle... and it is unusual that the deficit is expanding... [adding stimulus this late in the cycle] has never happened before.' Gundlach sees the deficit getting worse, with 'a lot of bonds supplied to the market.' He predicts a negative rate of return for the S&P 500 this year. My conviction is high, higher than that the 10-year yield will break to the upside. And most likely, the feds will respond with even more EZ money policies. The Fed will cut rates to zero... and beyond. And the federal government will both cut taxes... and expand spending."

How Debt Could Blow Up the Trump Economy -Fortune
"In Trump's first three full quarters in the White House, GDP clocked growth just shy of his vaunted goal of 3%, a performance that by recent standards looks stellar. The stock market has added a quarter to its value since the election, a $5 trillion vote of confidence. The jaunty outlook is recharging animal spirits in corner offices: In its January survey of small companies, the National Federation of Independent Business found that 32% of the enterprises rated the present climate 'a good time to expand'; that was a record high and a threefold increase from late 2016. Fueling the giddiness is the President's signature legislative achievement: the Tax Cuts and Jobs Act, which slashed rates for corporations from 35% to 21%. The new law is a runaway hit with business leaders....Trump's heady economic potion, however, is masking misguided policies that could leave those same businesses with a severe hangover from today's celebration. The U.S. government's huge and growing budget deficits have become gargantuan enough to threaten the great American growth machine. And Trump's policies to date - a combination of deep tax cuts and sharp spending increases - are shortening the fuse on that fiscal time bomb, by dramatically widening the already unsustainable gap between revenues and outlays. By 2028, America's government debt burden could explode from this year's $15.5 trillion to a staggering $33 trillion - more than 20% bigger than it would have been had Trump's agenda not passed....A cyclical downturn, a sharp decline in stock prices, or an unexpectedly steep increase in real interest rates dictated by skeptical overseas investors might be the catalyst that prompts legislators to get serious about reducing entitlements and debt."

Do You Own Bitcoin? The IRS Is Coming for You -Wall Street Journal
"Late last year, the Internal Revenue Service persuaded a federal judge to require Coinbase, a San Francisco-based digital-currency wallet and platform with about 20 million customers, to turn over customer information. Driving the IRS's decision was its belief that few bitcoin investors appear to be paying taxes due on sales. The court order is one of the agency's first moves as it clamps down on cryptocurrency scofflaws....Criminal tax lawyers expect the IRS will act on the information and high-profile cases will follow. Some cryptocurrency holders are now disclosing past tax lapses to avoid potential criminal prosecution....'Digital currency holders shouldn't think they can hide from the IRS,' he says. Smaller investors are also feeling heat. Many traded during last year's price spike, and tax preparers are now asking clients routinely about cryptocurrency sales. They aren't supposed to sign returns with unreported income....Tax triggers. Selling a cryptocurrency for cash typically triggers capital gains or losses. Using it to buy something like a meal or a car also counts as a sale by the buyer, even if the recipient accepts the cryptocurrency."

Will the stock market crash? Yes. Here’s what to do now -USA Today
"One minute, all economic indicators are sitting pretty and the Dow Jones industrial average is hitting record highs. The next - blammo - we're in the throes of a stock market 'sell-off,' or 'right-sizing,' or whatever you want to call it...Just as it did recently, the stock market is going to decline again. But no one has the luxury of getting a calendar notice announcing the time and magnitude of a seismic stock market event. Still, just knowing that these things happen means you can create in advance a game plan for what to do while you’re in the thick of it. To prevent a knee-jerk reaction during periods of stock market volatility, follow these five tips. 1. Trust in diversification - When a market decline hits, your results may vary - and perhaps for the better - if you've invested money across different baskets of asset classes. 2. Remember your appetite for risk - Even though the stock market has its roller-coaster moments, the downturns are ultimately overshadowed by longer periods of sustained growth. That's the reality on paper. 3. Know what you own - and why - Part of doing stock research is crafting a written record of the strengths, weaknesses and purpose of every investment in your portfolio. 4. Be ready to buy the dip - Market dips are when fortunes can be made. The trick is to be ready for the fall and willing to commit some cash to snap up investments whose prices are dropping. 5. Get a second opinion - It's rewarding to be a DIY investor, especially during the good times when the stock market’s on a tear and your portfolio is going up in value."

China Trade Tariffs: Good or Bad Idea? -Fox Business WATCH
Swiss America Chairman Craig R. Smith joined Fox Business host Charles Payne to discuss a potential China trade war. The Trump administration is assembling a package of $30-60 billion in China trade tariffs. Does Mr. Smith think this recent show of strength by President Trump toward America's biggest competitor will lead to a full-blown U.S. China trade war? Watch now to find out.

The Dollar's Doldrums -Project Syndicate
"Donald Trump's first year as US president has been, if nothing else, a bounteous source of surprises. One of the big ones in the circles I frequent is dollar weakness. Between January 2017 and January 2018, the broad effective exchange rate of the dollar fell by 8%, wrong-footing many of the pundits....Economic commentators are better at rationalizing past exchange-rate movements than at forecasting future trends. So, when it comes to explanations for the dollar’s decline over the past year, we are confronted by an embarrassment of riches. The most popular explanation for dollar weakness is that Trump, through incompetence or misdirection, failed to deliver what he promised. There was no across-the-board import tariff. There was no abrogation of the North American Free Trade Agreement. There was no $1 trillion infrastructure package. But there were, in fact, deep tax cuts. There were, in fact, interest-rate hikes by the Federal Reserve. And there were, in fact, tax changes creating incentives for the repatriation of profits. Other things equal, these developments should have propped up the dollar. So there must be more to its weakening than just Trump’s failure to deliver. Another popular explanation is that investors expected the real exchange rate to rise through inflation rather than currency appreciation....Investors have no way to forecast the impact of policies, because policies thought to be headed one way suddenly veer in the opposite direction....More chaos in the White House would only depress the dollar further."

Larry Kudlow: I've Supported The Gold Standard Since The 1970s -Blodget/Business Insider
"Nov. 2, 2010 - Former Wall Street economist and star CNBC host Larry Kudlow takes issue with Joe Weisenthal's description of him as a 'fair-weather gold bug.' Specifically, Larry responds to Joe's assertion that the Wall Street bailout that Larry supported could not have been possible if every dollar had to have been backed by gold: Hi Henry [Blodget]. Would you be kind enough to tell your man Wiesenthal that I have supported a gold -backed dollar since the mid 1970s. Also, I favored letting Lehman go bankrupt. And I did not support Tarp 2, the capital injections. I did support Tarp 1, where Treasury was going to buy toxic assets in order to resell them, RTC style. And, Tarp 1 would have been possible under a gold-backed dollar."

How Will Gold Prices Behave During The Next Economic Crisis? -Alt-Market
"It is generally well known in economic circles and in the general public that precious metals, including gold, tend to be the go-to investment during times of fiscal uncertainty. There is a good reason for this. Precious metals have foundation qualities that provide trade stability; these include inherent rarity (rather than artificially engineered rarity such as that associated with cryptocurrencies), tangibility (you can hold gold in your hand, and it is relatively difficult to destroy accidentally), and precious metals are easy to trade....When gold and currency are tied together, gold prices tend to remain rather stable, as they are often set by the national treasury. In 1914, the price of gold was $20 per ounce and had maintained that approximate value for decades. To give some perspective on value, in 1914 the average house cost $3,500, or 175 ounces of gold....As far as the crash of 2008 is concerned, we all know what happened with gold markets. In the lead up to the crash, from 2004 to 2008, gold doubled in value. Then, after the initial crash from 2008 to 2012, it doubled again....The question is, what happens next?....Once higher interest rates kill the stock market bubble as well as the renewed housing and credit bubble, gold will skyrocket as one of the only asset classes with tangible real world value."

It is very interesting to note that in 2017 the U.S. national average home price was $227,300. The same 175 ounces of gold that bought an average U.S. home in 1914 would, at today's price of $1,300/ounce, equal $227,500! By any standard gold is a VERY reliable store of value! Learn more in our Timeless Truth About Gold & Silver report and DVD.

Here Comes The Main Event: Trade War With China -Zero Hedge
"The recently announced global steel and aluminum tariffs by the Trump administration were just a (Section 232) preview of the main event: Trump's imminent trade war with China, which as Credit Suisse previews, will be unveiled any moment in the form of tariffs and restrictions on trade with China, reportedly in retaliation for Chinese IP violations. First, a reminder on the all-important Section 301: What is Section 301? Section 301 of the 1974 Trade Act allows the President to, among other things, 'impose duties or other import restrictions on the products of [a] foreign country,' if the President determines that that country is violating a trade agreement or 'engages in discriminatory or other acts or policies which are unjustifiable or unreasonable and which burden or restrict United States commerce.'....What to expect? here are some high-level thoughts from Credit Suisse: 'The Chinese will likely respond in kind, beginning a succession of tit-for-tat trade policies between the two countries....If the U.S. acts unilaterally (as it appears it will), China will likely bring a challenge before the World Trade Organization (WTO)'....In terms of specifics, the US trade deficit last year hit an all time high of $375BN. The Trump administration is planning imposing tariffs on up to $60bn of Chinese goods, or roughly 13% of goods import from China ($505BN), and 2.75% of total US goods import according to Danske Bank; the tariffs will target tech products, telecoms & clothing....As trade war looms, it would be prudent for investors to start thinking about potential risks to the companies they own if they have sufficient business in China."

Asset forfeiture: Rap albums and hard-earned cash are the government's 'little goodies' -USA Today
"The legendary Wu Tang Clan rap album 'Once Upon a Time in Shaolin' may soon be part of the federal government’s forfeiture fund. Earlier this month, a federal judge ordered infamous 'Pharma Bro' Martin Shkreli to hand over the one-of-a-kind album, along with a Picasso painting, $5 million in bail he posted, and another rare rap album, Lil Wayne’s 'Tha Carter V.' Those assets will only add to the already bulging federal forfeiture coffers. Over the past 30 years, this fund has ballooned 1,600%, from $93.7 million in deposits in 1986 to $1.6 billion last year. But many of the owners who've had their property confiscated by the feds aren’t convicted criminals like Shkreli, they’re innocent people never even charged with a crime, much less convicted of one. A whopping 87% of DOJ forfeiture cases involve civil, not criminal, forfeiture - meaning no conviction is required. Under U.S. Attorney General Jeff Sessions, the Trump administration has doubled-down on this controversial practice....No one wants fraudsters like Shkreli and other convicted criminals to profit from their wrongdoing. But civil forfeiture allows the government to take property from innocent individuals. Although the Obama administration scaled back the controversial practice, Attorney General Sessions has embraced civil forfeiture, restoring the federal 'adoption' program that provides a hefty bounty for state law enforcement agencies to seize property in collaboration with the federal government. Police and prosecutors like civil forfeiture because their departments often get to keep most, if not all, of the forfeiture proceeds....Civil forfeiture can be - quite literally - highway robbery. Musician and entrepreneur Phil Parhamovich found that first-hand, when he was pulled over by the Wyoming Highway Patrol last year and ticketed $25 for improperly wearing his seatbelt. During the traffic stop, troopers found $91,800 in cash. Suspicious, they seized the money but never charged Parhamovich with a serious crime. Parhamovich wanted to use his cash to purchase a legendary Madison, Wisc., music studio where Nirvana and the Smashing Pumpkins had once recorded. In the months after his highway robbery, Wyoming refused to return the money to Parhamovich. In fact, they even held a hearing about his funds before they notified him of the hearing date. The Institute for Justice (IJ) sued the state of Wyoming on Parhamovich's behalf."

Time to Be Alert! -Knowledge Leaders Capital
"This is the time to be alert for any signs of a failure in the S&P 500. Why? There are two really good historical precedents to the current market configuration. The set-up is as follows: stocks suffer a rather quick correction, bounce back, take out the previous lows and experience a waterfall decline. The period of time from the bounce-back high to a new low was seven days. Let's look at the 1929 crash to start. The S&P 500 peaked at 31.86 on September 16, 1929. Over the next 14 days, the index experienced a 10.08% correction. Then, over the next four days, stocks bounced back by 7.54%. What followed was a seven-day period of time where stocks drifted lower, and then on October 18, 1929 the low was broken and a waterfall decline ensued. The decline from October 8, 1929 to November 13, 1929 was a 22-day waterfall decline, with stocks dropping 42.68% into November 13, 1929. The 1987 crash was a remarkably similar experience. Stocks peaked on August 25, 1987 and then began a 7.79% decline over 18 days. Stocks then rebounded by 5.65% over the following 10 days, peaking on October 5, 1987. Over the next seven days, the low failed and a waterfall decline followed. The decline was 28.51% over four days, culminating in a low on October 19, 1987. In the last 40 days, we’ve seen the S&P 500 peak at 2872.87 on January 26. Stocks experienced a 10.16% correction over nine days, and then they bounced back by 7.96% over the next 20 days ending last Friday, March 9. We are now in that seven-day window where stocks need to hold up. If, over the next seven days, we drift lower and take out the 2581 low of February 8, history suggests this is a set-up for a waterfall decline."

Record Buybacks at Worst Possible Time -Shedlock/The Maven
"Donald Trump's tax cuts are already paying dividends... well, actually the companies that are benefiting from the Tax Cuts and Jobs Act passed by the Trump Administration in December are not only returning cash to shareholders in the form of dividends, but are presiding over what could be the largest share buyback program in history....Suddenly US companies have found themselves flush with cash, and they need to find a way to spend it. The options are typically to plough funds back into the company via capital expenditures like new buildings, products or equipment. Or, distribute the money back to shareholders in the form of dividends, or through share buybacks which don't obviously go directly to shareholders, but reduce the number of outstanding shares, thereby making the share float less diluted....Goldman Sachs estimates share buybacks will jump to $650 billion while JP Morgan predicts they could run as high as $800 billion. Either estimate would far exceed the $530 billion in share buybacks recorded in 2017....There are plenty of negatives to share buybacks, with the most obvious being that buying back shares means that executives are foregoing the opportunity to put that extra cash back into the business instead, which could potentially grow the company long term. Recent studies have linked increased spending on buybacks to decreased corporate investment - such as expansion plans, more hiring or raises....The bottom line is that share buybacks usually do nothing to create long term shareholder value and are never a match for a steady, and sustainable, dividend."

The Fed could have a surprise in store for Wall Street -Crudele/New York Post
"Wall Street is wondering whether there will be three or four interest rate hikes this year. After Friday's strong employment report for February, four seems to now be the odds-on favorite. I'm going to be a troublemaker and suggest something else: If the Federal Reserve is truly worried about an overheating economy and future inflation, then there are some shocking steps it could take that won't make the stock market or the Trump administration happy. The Fed has been raising rates gradually since December 2015. In all, there have been five tiny hikes of one-quarter percentage point each. Hikes six, seven, eight and nine could come in 2018, starting with the Fed's March 21-22 meeting. The Fed is concerned not only with inflation as you and I know it - meaning, a rise in prices - but it is also clearly worried about asset inflation....There's an old saying in the financial community that it's the Fed’s job to pull the punch bowl away when the party gets out of hand. So how could Powell's Fed keep Wall Street from getting more inebriated?....The most shocking thing would be to raise interest rates between its official meetings. After the meeting next week, the Fed doesn't have another policy-making Open Market Committee meeting until early May. A surprise rate hike in April would slap some sense back into investors. Or, if the Fed could hike rates by more than the customary quarter percentage point. A half-point hike once or twice this year would also get investors' attention."

What Will Blow the Stock Market to Pieces -Bonner/Bonner And Partners
"So let us continue with our description of the Great Mountebank Market of 1987–2018. It wasn't… and isn't… what investors thought. Investors thought they were making money by funding America's win-win industries. But they weren't investors at all; they were speculators....In 1971, the feds replaced the old dollar with the new dollar. Alike in every other respect to the old one, the new dollar had one critical difference: It had wings. The old dollar was weighed down by gold. It could never get off the ground....The old dollar helped make America the biggest exporter in the world, with an unbroken chain of export surpluses reaching back more than a hundred years. But the new dollar could be gotten without satisfying a single customer. It was not earned on Main Street. Instead, it was created, by the credit industry, on Wall Street....The total accumulated deficits from 1971 to the present toted to nearly $20 trillion in today's money. Debt soared to the rafters… and then went through the roof....Today's GDP is around $20 trillion. At the historic ratio, the economy could support $30 trillion of debt. Instead, it has $68 trillion. This gives us a measure of how out-of-whack the whole system has become. And it also gives us a hint of what kind of adjustment would be necessary to bring it back into whack. About $38 trillion of debt… debt-fueled asset prices… and debt-driven GDP… would have to disappear....And the entire stock market rose up, as if on a cloud of deadly gas. Fake money, phony profits, counterfeit interest rates - all swirl together in a noxious ball of highly volatile fumes. And now, the Fed - reversing 30 years of policy - strikes a match. After its artificially low rates, and its quantitative easing… it intends to engineer a 'soft landing' using its quantitative tightening policy. Instead, it is likely to blow the whole system sky high."

Lawrence Kudlow Being Considered for Top White House Economic Post -Wall Street Journal
"Top White House officials have reached out to gauge Lawrence Kudlow's interest in becoming President Donald Trump's top economic adviser, and the CNBC commentator was expected to interview for the position as soon as this week, people familiar with the discussion said. Mr. Kudlow, a longtime cable TV economic analyst and veteran of the Reagan administration, is under consideration to replace Gary Cohn as director of the National Economic Council. The post doesn't require Senate confirmation. Mr. Cohn announced his resignation last week after Mr. Trump's decision to enact new steel and aluminum tariffs. Other candidates for the job include Chris Liddell, the director of strategic initiatives at the White House, and Peter Navarro, the architect of the president’s tariff program, White House officials said. Mr. Kudlow and Mr. Cohn both have publicly opposed Mr. Trump's decision to implement tariffs, which they warn could tempt a trade war."

Cold, hard cash isn’t being dethroned by the Bitcoins, Venmos and PayPals of the world -Marketwatch
"Cash isn't dead yet. Far from it. These days you can pay for stuff or send money with newfangled 'electronic' services such as PayPal and Venmo, fall back or traditional credit cards, cut an old-fashioned check or take your chances with Bitcoin. Even with all these new options, however, the demand for cash 'remains robust around the world' and it's even increasing, according to a new study. Although the use of electronic payments has grown more rapidly since 2000, the amount of cash in circulation among the world's wealthier countries has increase about 7% to 9%, the Bank for International Settlements found....People who like to keep lots of currency on hand may do so because they are uncertain about the health of the economy or the stability of their government."